A bill to amend the Internal Revenue Code of 1986 to provide tax incentives for the establishment of tax enterprise zones, and for other purposes.

Amends the Social Security Act to: (1) add a new title XXI, State Welfare Reform Demonstration Projects; and (2) establish the Welfare Reform Commission. Requires the Commission to: (1) award grants to enable States to establish demonstration projects to reduce welfare dependency in the State; and (2) report annually to the President and the Congress on any welfare reforms resulting from such grants. Specifies grant application requirements.

Authorizes appropriations.